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Location choice and optimal zoning under Cournot competition

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  • Chen, Chin-Sheng
  • Lai, Fu-Chuan

Abstract

This paper introduces a symmetric zoning regulation into a spatial Cournot competition model and analyzes how this intervention affects equilibrium locations and social welfare. It is shown that firms will locate separately at the two endpoints of a wide enough zoning enacted in the middle area of a linear market. This location pattern implies that social welfare can be improved by implementing a proper zoning regulation.

Suggested Citation

  • Chen, Chin-Sheng & Lai, Fu-Chuan, 2008. "Location choice and optimal zoning under Cournot competition," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 119-126, March.
    • Handle: RePEc:eee:regeco:v:38:y:2008:i:2:p:119-126
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    Cited by:

    1. Vitor Miguel Ribeiro, 2014. "Strategic delegation in two-sided markets," FEP Working Papers 536, Universidade do Porto, Faculdade de Economia do Porto.
    2. Juan Carlos Bárcena-Ruiz & Francisco Javier Casado-Izaga, 2014. "Zoning Under Spatial Price Discrimination," Economic Inquiry, Western Economic Association International, vol. 52(2), pages 659-665, April.
    3. Stefano Colombo, 2012. "On optimal zoning in a linear town with Cournot competitors," Letters in Spatial and Resource Sciences, Springer, vol. 5(2), pages 113-118, July.
    4. Hamid Hamoudi & Isabel Rodríguez & Marcos Sanz Martín-Bustamante, 2017. "Optimal Zoning in Spatial Differentiation," Estudios de Economia, University of Chile, Department of Economics, vol. 44(1 Year 20), pages 33-51, June.
    5. Hang Cao & Leonard F. S. Wang, 2023. "Optimal zoning of managerial duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 58-67, January.
    6. Chia-Hung Sun & Jyh-Fa Tsai & Fu-Chuan Lai, 2017. "Spatial Cournot competition in a circular city with more than two dispatches," The Japanese Economic Review, Japanese Economic Association, vol. 68(4), pages 413-442, December.
    7. Juan Carlos Bárcena-Ruiz & F. Javier Casado-Izaga, 2020. "Partial ownership of local firms and zoning of neighboring towns," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 27-43, August.
    8. Jorge Fernández-Ruiz, 2020. "Mixed duopoly in a Hotelling framework with cubic transportation costs," Letters in Spatial and Resource Sciences, Springer, vol. 13(2), pages 133-149, August.
    9. Devin Bunten, 2017. "Is the Rent Too High? Aggregate Implications of Local Land-Use Regulation," Finance and Economics Discussion Series 2017-064, Board of Governors of the Federal Reserve System (U.S.).
    10. Chia-Hung Sun, 2014. "Spatial Cournot Competition in a Linear City with Directional Delivery Constraints," The Japanese Economic Review, Japanese Economic Association, vol. 65(3), pages 344-374, September.
    11. Juan Bárcena Ruiz & F. Casado-Izaga & Hamid Hamoudi, 2014. "Optimal zoning of a mixed duopoly," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 141-153, January.
    12. Chia-Hung Sun & Jyh-Fa Tsai & Fu-Chuan Lai, 2017. "Spatial Cournot Competition in a Circular City with More than Two Dispatches," The Japanese Economic Review, Springer, vol. 68(4), pages 413-442, December.
    13. Stefano Colombo, 2014. "Fee versus royalty licensing in spatial Cournot competition," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(3), pages 859-879, May.
    14. Colombo, Stefano, 2013. "Cartels in the unidirectional Hotelling model," Economic Modelling, Elsevier, vol. 31(C), pages 690-696.
    15. Juan Carlos Bárcena-Ruiz & F. Javier Casado-Izaga & Hamid Hamoudi & Isabel Rodriguez, 2016. "Optimal zoning in the unconstrained Hotelling game," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 427-435, June.
    16. Colombo, Stefano, 2012. "An indifference result concerning collusion in spatial frameworks," Research in Economics, Elsevier, vol. 66(1), pages 18-21.
    17. Juan Carlos Bárcena-Ruiz & F. Javier Casado-Izaga, 2017. "Zoning A Cross-Border City," Journal of Regional Science, Wiley Blackwell, vol. 57(1), pages 173-189, January.
      • Bárcena Ruiz, Juan Carlos & Casado Izaga, Francisco Javier, 2015. "Zoning a cross-border city," IKERLANAK info:eu-repo/grantAgreeme, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    18. Toshihiro Matsumura & Noriaki Matsushima, 2012. "Spatial Cournot competition and transportation costs in a circular city," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 33-44, February.
    19. Shuxiao Sun & Xiaona Zheng & Huaqing Hu & Tao Huang, 2023. "Spatial competition and social welfare considering different feasible location regions," Journal of Economics, Springer, vol. 138(1), pages 17-50, January.
    20. Juan Carlos Bárcena-Ruiz & F. Javier Casado-Izaga, 2018. "Optimal size of a residential area within a municipality," Journal of Economics, Springer, vol. 124(1), pages 75-92, May.
    21. Stefano Colombo, 2011. "Spatial price discrimination in the unidirectional Hotelling model with elastic demand," Journal of Economics, Springer, vol. 102(2), pages 157-169, March.
    22. Takeshi Ebina & Toshihiro Matsumura & Daisuke Shimizu, 2009. "Mixed oligopoly and spatial agglomeration in quasi-linear city," Economics Bulletin, AccessEcon, vol. 29(4), pages 2722-2729.
    23. Toshihiro Matsumura & Noriaki Matsushima, 2009. "Regional restriction, strategic delegation, and welfare," ISER Discussion Paper 0761, Institute of Social and Economic Research, Osaka University.
    24. Hamid Hamoudi & María J. Moral, 2017. "Green zoning regulation under price discrimination," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 35(1), pages 151-171.
    25. Stefano Colombo, 2016. "A Model of Three Cities," International Regional Science Review, , vol. 39(4), pages 386-416, October.

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